Guinta is wrong on Project Labor Agreements

Sunday

Feb 27, 2011 at 2:00 AM

Congressman Frank Guinta's recent attempt to ban Project Labor Agreements (PLAs) was voted down in the U.S. House a few days ago. The House was wise not to go along with Guinta's proposal, even though his New Hampshire colleagues Sen. Kelly Ayotte and Congressman Charlie Bass supported Guinta's effort. And like a bad penny, there seems to be no doubt that this ill-advised proposal will come back again.

By Joe Casey

Congressman Frank Guinta's recent attempt to ban Project Labor Agreements (PLAs) was voted down in the U.S. House a few days ago. The House was wise not to go along with Guinta's proposal, even though his New Hampshire colleagues Sen. Kelly Ayotte and Congressman Charlie Bass supported Guinta's effort. And like a bad penny, there seems to be no doubt that this ill-advised proposal will come back again.

The news from early February that federal and state law-enforcement agencies had twice raided the $600 million Veterans Administration hospital construction site in Lake Nona, Fla., should be viewed as a cautionary tale for Congressman Frank Guinta and others who possess an ill-informed and knee-jerk opposition to Project Labor Agreements here in New Hampshire and across the country.

On Feb. 9, nine illegal immigrants were detained at the 65-acre job site near Orlando, Fla. Authorities from U.S. Immigration and Customs Enforcement, Florida Department of Financial Services and Division of Insurance Fraud found six of them hiding in a ceiling after searching for several hours, according to the Department of Homeland Security.

From the outset, the Veterans Administration made a conscious decision to not use a Project Labor Agreement for this job in Florida, even though the Obama Administration has in place an executive order that encourages the use of PLAs for federal construction projects in excess of $25 million.

When designed properly, PLAs can help projects meet deadlines by guaranteeing a steady supply of highly trained and highly productive local labor, and by reconciling the various work routines of the many trades.

In other words, it's a project management tool that enables construction owners to manage their jobs and obtain "on time, on budget" results. In fact, there have been numerous examples here in New Hampshire of PLAs achieving these results.

Where the VA failed, and where Congressman Guinta is failing today, is by not obtaining a more thorough understanding of the two distinct business models that constitute the U.S. construction market today.

The first is a business model that is epitomized by the use of PLAs. It is a business model that offers increased job site efficiencies through a steady, local supply of the safest, most highly trained and productive skilled craft work force known to mankind — a work force developed through almost a billion dollars a year in private investments in apprenticeship training programs nationwide that, in turn, develops a work force that commands pay and benefits that are reflective of their skill and productivity levels (which numerous and rigorous academic studies have shown actually reduces costs for public agencies). And, let's not forget, those higher pay rates contribute to a more sound local tax base — not to mention the health of local small businesses like car dealerships, restaurants and retail stores.

Furthermore, the PLA model promotes career training opportunities for local residents — particularly women and minorities. And, most notably, PLAs continue to be utilized by the profit-oriented and cost-conscious private sector because of one paramount rationale: they work!

Toyota has built all of its North American manufacturing facilities under PLAs, and they have reported that their construction costs are one-third less than their competitors who eschew the use of PLAs.

Even Walmart is increasingly turning to PLAs to construct its retail facilities.

Now, this PLA model lies in stark contrast to the "race to the bottom" business model that adheres to the belief that contracts in the construction industry ought to be awarded based primarily upon a contractor's ability to assemble a low-skill, low-wage work force that is oftentimes comprised of undocumented or illegal workers.

Congressman Guinta and his allies and political contributors in the so-called "merit shop" construction sector are fond of embracing the tenets of "fair and open competition," but that begs the question as to whether the systematic use of undocumented workers constitutes "fair and open competition."

Clearly, the evidence is in. The taxpayers of Florida ought to be outraged that their tax dollars are being used to subsidize these types of employment practices, and the taxpayers of New Hampshire ought to be concerned that Congressman Guinta wants to take our state and the entire country down a similar path.

Joe Casey is president of the N.H. Building Trades Council.

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